What’s happening with student tenancies?

Most significantly, fixed-term assured shorthold tenancies will be scrapped, along with Section 21 ‘no fault’ evictions.

Many of these changes come into effect from the 1st of May this year. Here’s what landlords and tenants can expect from the new system.

The end of fixed-term tenancies

Until now, fixed-term assured shorthold tenancies (ASTs) have been the default for most student lets. Following the agreed tenancy length – usually 12 months – the landlord could ask the tenant to leave without giving a reason.

Many existing and new private student tenancies will automatically become assured periodic tenancies (APTs). Students can leave at any time by giving two months’ notice, instead of being locked into a 12-month contract.

This gives students more flexibility if, for example, they stop studying or want to change their accommodation.

Please note: purpose-built student accommodation (PBSA) run by universities or businesses registered under approved codes (such as Unipol) don’t need to follow these new rules and can continue using fixed-term contracts.

No more Section 21

Landlords can no longer evict their tenants without formally stating a reason. This should give students more confidence in their living arrangements, including protection against unscrupulous landlords who might have used the threat of Section 21 to stop them from making requests – for example, to fix a boiler or treat damp.

From May onwards, landlords will rely on the strengthened and expanded grounds of Section 8 to gain possession.

The exception of academic years

Landlords can still give notice for their tenants to leave the property at the end of the academic year, so they can prepare for new students to move in. If necessary, they can use a New Possession Ground (Ground 4A) for an HMO if the current students don’t leave after the notice.

A Ground 4A requires a notice period of four months, after which the landlord can apply to the court for a possession order. Here’s more information on the government website.

A limit on rent increases

The RRA introduces rules against unfair rent payments to help students afford their living costs. For example:

• Landlords can only increase the rent once a year
• Tenants can more easily challenge rent increases at a tribunal
• Rent bidding – where landlords accept offers above the advertised rent – will be banned
• There will be limits on advance rent, meaning monthly payments (instead of termly or annual upfront payments) will increasingly become the norm

Stronger rights for tenants

Other areas of the RRA are relevant to student lets – notably, the ban on blanket discrimination (including against people with children) and the requirement to consider tenants’ requests to keep pets.

Final thoughts

While the changes of the RRA should help to balance the rights of landlords and tenants, there may be challenges along the way. Landlords need to familiarise themselves with the government information and adapt their approach to student lets. For instance, the shift to rolling periodic tenancies calls for new paperwork and more careful cash flow management. If in any doubt, we recommend you talk to a legal expert for advice.